Interim Olympic Delivery Authority (“Ioda”) Published a Set of Procurement Principles (“The Principles”) to Map out the Core Values for the Procurement Activities

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Olympic Delivery Authority Procurement Policy (draft for consultation)

FOREWORD

The opening ceremony for the London 2012 Olympic Games will take place on 27 July 2012. The Olympic Games and Paralympic Games that follow them will be great events, providing memorable moments for millions, in London and across the world.

The Olympic Delivery Authority (“ODA”) has been established to deliver new venues and infrastructure for the Games and to facilitate the Legacy – the Games will last six weeks, but the social, environmental and economic benefits will have a far longer reach.

The challenge for the ODA, operating under unparalleled scrutiny, is to deliver the Games and the Legacy in a sustainable way, on time and to budget. To do this, we will need to work with some of the best designers and construction companies in the world, many of them based in the UK. We will need to procure and manage the delivery of goods and services in a way that enables us to deliver on time against a tight budget, and to benefit from the innovation and creativity that these companies can offer, but also to help to realise the aspirations and commitments set out in London’s bid and inspired by London’s Olympic vision. The Procurement Policy detailed in this document sets out how ODA intend to do this and to provide clarity to current and potential suppliers and the wide range of stakeholders that have an interest in how the ODA delivers its functions.

The ODA has sought to share a common procurement approach with that of the London Organising Committee for the Olympic Games, the Greater London Authority and the London Development Agency to achieve sustainable development by maximising the economic, social, health and environmental benefits of the Games. This will be achieved particularly through regeneration including issues of employment, skills, culture, health, education, volunteering, housing, energy, waste and community engagement, amongst others at a local, national and international level.

This Procurement Policy sits above a set of more detailed procurement documentation and sustainability plans. The Policy has been prepared using the best industry and public procurement practice as codified by the Office for Government Commerce (“OGC”) and tailored to meet the specific needs of the ODA. It is structured to assist the ODA to comply with the requirements of OGC Gateway TM Reviews which will be undertaken at key stages throughout the programme. We would like to thank the OGC, Greater London Authority, Partnerships UK and other partners who have helped us to develop this document.

This public document is available to all interested parties and will be on the London 2012 website.

Jack Lemley - Chairman 11 July 2006

CONTENTS

1. Introduction 1 2. Delivering the Programme 6 3. The Procurement Framework 8 4. Governance 11 5. Management of Risk and Opportunity 13 6. Seeking and Obtaining Value for Money 15 7. Procurement Values 18 8. Communication and Stakeholder Engagement 25

Annex A Olympic & Paralympic Games 27

Annex B Definition of Terms, Reference Organisations and Websites 28

Annex C Consultation for document 30

1 INTRODUCTION

Background

1.1 The delivery of the London 2012 Olympic Games and Paralympic Games and their legacy (“the Games and Legacy”) is like no other programme of work. The scale and specialist requirements, coupled with the immoveable deadline for delivery, create a set of specific and unique challenges.

1.2 The delivery and funding of the Games and Legacy are joint public/private sector endeavours. The UK Government and the Mayor of London have provided guarantees to the International Olympic Committee (“IOC”) and are responsible for delivery, funding and its financial success.

The Procurement Principles

1.3 On 7th September 2005, the Interim Olympic Delivery Authority (“iODA”) published a set of Procurement Principles (“the Principles”) to map out the core values for the procurement activities. The Principles were developed on the understanding that the preparations for the Games are preparations for a greater prize i.e:

• the events themselves;

• their transformational impact; and

• their lasting, positive legacy – physical, social, sporting, environmental and economic.

1.4 In line with the Objectives of the Olympic Board, the fundamentals underlying the Principles were:

• the delivery of the Venues and Infrastructure:

- in a technically satisfactory and commercially viable state;

- to programme; and

- to budget while achieving Value for Money (“VfM”).

• the achievement of the legacy, reflecting:

- the aspirations and commitment of the Olympic Bid;

- the development of London as an exemplary, sustainable world city;

- strong, long-term and diverse economic growth locally, regionally and nationally;

- fundamental improvements in the environment and in the way in which resources are used; and

- the regeneration and development, benefiting the local communities and the wider Thames Gateway.

1.5 In the preparation of the Procurement Policy the ODA has been mindful of supporting the GLA’s Olympic and Paralympic Games Programme Objectives (Annex A) of which the principles are:

• To host an inspirational, safe and inclusive Olympic and Paralympic Games and leave a sustainable legacy for London and the UK:

- To stage an inspirational Olympic Games and Paralympic Games;

- To deliver the Olympic Park and all venues on time, within agreed budget, to specification and providing for a sustainable legacy;

- To maximise the economic, social, health and environmental benefits of the Games for the UK, particularly through regeneration and sustainable development; and

- To achieve a sustained improvement in UK sport before, during and after the Games.

1.6 The ODA subscribes to integrated/collaborative procurement approaches and to the principles of the Egan and Latham reports and OGC's Achieving Excellence in Construction Initiative. In particular, the ODA will apply these principles, the good practice, codified by the OGC in its suite of Achieving Excellence best practice guidance and The Common Minimum Standards for the Built Environment. Where necessary ODA will seek advice from the OGC on these matters.

Minister’s Statement

1.7 When launching the first Olympics Business Summit on January 24th 2006, Tessa Jowell, Minister at the Department of Culture, Media and Sport, with responsibility for the 2012 Games, said:

“So today’s summit signals that determination to ensure the economic benefits from the Games are maximised for all UK based businesses and workers. The Government will be spending £3bn on physical infrastructure for the Games and we want that money to work to the maximum benefit of our economy. This doesn’t mean simply an outdated ‘Buy British’ campaign, but we do want to ensure that the public money spent on the Games is recycled into the British economy wherever possible to the benefit of British based companies and the people working in them.”

1.8 The Mayor of London has made it clear that procurement must be done in a way that maximises benefits in terms of equality and regeneration. This is in line with the key overall objective that the London 2012 Games provide major regeneration benefits, particularly in East London.

Ensuring Sustainable Procurements

1.9 The ODA has sought to share a common procurement approach with that of the London Organising Committee for the Olympic Games, the Greater London Authority and the London Development Agency to achieve sustainable development by maximising the economic, social, health and environmental benefits of the Games.

This will be achieved particularly through regeneration including issues of employment, skills, culture, health, education, volunteering, housing, energy, waste and community engagement, amongst others at a local, national and international level.

1.10 It is a requirement of the key stakeholders that wherever possible, and not in contradiction with the EU Public Procurement Directives, there are benefits to London’s diverse communities as well as the UK as a whole both in the run-up to and during the Games, and in the significantly longer term of the Legacy. The Procurement Policy is designed to ensure a planned and consistent approach to achieving these goals.

1.11 The principles of sustainable development (i.e. positive impacts on society and the environment of the Games and the Legacy) are embodied within the Candidate File - Towards a One Planet Olympics, available online at www.london2012.com

1.12 The ODA will work to use its purchasing power to support sustainable development in London and the UK. In line with the guidance from the Government sponsored Sustainability Procurement Task Force, the Greater London Authority Group’s Sustainable Procurement Policy and the OGC guidance on sustainable procurement; that all sound procurements support sustainability, the ODA will ensure that sustainability is integrated into Business Cases, Procurement Plans and related contracts.

The Procurement Policy

1.13 Among the undertakings in the Principles was the development of a Procurement Policy (“the Policy”) which is this document.

1.14 The Policy reflects the Principles and also takes into account:

• the current EU procurement legislation and the UK’s corresponding enabling legislation;

• the responsibility of the ODA Chief Executive, as Accounting Officer of the ODA, to ensure compliance with the Government’s procurement policy as set out in “Government Accounting, Chapter 22”, available at www.government- accounting.gov.uk; and

• the criticality of procurement and delivery in respect of time and risk.

1.15 The London Organising Committee for the Olympic Games (“LOCOG”), Transport for London (“TfL”) and the London Development Agency (“LDA”) will also be responsible for procurement of contracts for goods, works and services in connection with the Games. Where possible, the ODA aims to share a common procurement approach.

Relationship between Key Documents

1.16 Within the Programme for the Games and Legacy, different venues and elements of infrastructure will be broken down into a series of separate projects, within which a number of contracts/services will need to be procured, each with particular procurement characteristics.

1.17 To provide a platform for these procurements, the Policy will be supported by a suite of documents which is being developed. These include the Procurement Process and Procurement Procedures and Detailed Working Instructions which combine to form the Procurement Code (“the Code”).

1.18 The purpose of these supporting documents is to provide:

• clear understanding of the means by which the Policy will be pursued in practice; and

• clear and detailed direction on how to conduct the procurement.

1.19 Each separate project will require a Procurement Plan which reflects the Policy and the Code.

1.20 The diagram overleaf shows the hierarchy and inter-relationship of ODA documents both in existence and under development which are relevant to procurement.

ODA

Management Financial Corporate Plan Programme Master Plan Statement Memorandum & Plan Standing Orders

Procurement Policy c.) t/ Health & n

urces, et Project A s Procur ement d (E.g. Main Stadium) r Process Project B a

Policy, Strategy & Business Case incl.

d Business Reso Project C

n Procurement Plans n Case incl. a

DA Business t Procurement S Case incl. Plans le Developme Procurement

b “the CODE” Plans Procurement Procedures and

Safety / Huma Detailed (Sustaina Overarching O Working Instructions

Scope of the Policy

1.21 The Policy applies to all procurement activity undertaken by the ODA in connection with the Games and Legacy, both within and beyond the Olympic Park.

1.22 Procurement activity for the Games and Legacy will be diverse in its scope and will cover:

• Services - people and teams to plan, guide, design, build, commission, operate and service the facilities as well as the conversion of those legacy venues beyond the conclusion of the Games;

• Goods - goods and commodities and the supply of the same; and

• Works - construction and commissioning of venues, supporting structures and infrastructure and legacy conversion works.

This Document

1.23 This document comprises the following sections:

• Delivering the Programme – provides an introduction to the timetable, programme and project management approach, the master plan and the delivery partner;

• The Procurement Framework – outlines the mechanics of the procurement process within the public contracting regulations and primary commercial matters;

• Governance – addresses approvals, probity and transparency;

• Risk and Risk Management – outlines how, in the face of the many and varied risks associated with the programme, these need to be regularly monitored and managed to ensure the most effective balance between programme certainty, cost quality and scope;

• Obtaining Value for Money – using public money involves both identifying and meeting stakeholder requirements whilst at the same time offering the best possible value for money. This approach is not limited to the sole criterion of cost and must include the sustainable requirements of the Legacy;

• Procurement Values – lays out the values which the ODA is promoting throughout their procurement activity. These include, among others, sustainability, occupational health and safety, promoting design excellence, embedding quality and environmentally responsible procurement; and

• Communication and Stakeholder Engagement – lays out the ODA’s approach to communication with industry and potential suppliers as well as other intermediaries and communities.

2 DELIVERING THE PROGRAMME

The Programme Plan – Timescale

2.1 The fundamental requirement of the Programme Plan, and therefore a critical plank of the Policy, is to achieve the immoveable end date. The timescale is as outlined below.

Activity 2006 2007 2008 2009 2010 2011 2012 Planning and Design Enabling and Construction Olympic Overlay and Test Events

The Master Plan – Scope

2.2 Outline planning permission has been secured to build the Olympic Park and Venues. The Master Plan associated with that consent sets out the main locations for the various venues and the boundaries of the park. The Master Plan provides the vision of what the ODA will procure, but not the detail of how this will be done.

Programme and Project Management

2.3 Since January 2006, the ODA and its predecessors have been revalidating and reviewing the Master Plan to ensure that they can deliver the best possible Games and Legacy. This process is now drawing to a close, though there will be continual review of the details of the Master Plan and the Programme Plan adding clarity as more precise details are obtained, and as planned activity becomes actual and then completed.

2.4 The links and dependencies of each element of procurement activity and the relationship of the same to the Programme Plan will need to be continually reviewed and revised as the individual projects progress.

2.5 The ODA is developing a contract packaging approach which breaks down the entire programme of venues and infrastructure into suitable elements for procurement. Business Cases including the related Procurement Plans will be prepared for each project reflecting the procurement options and contract packaging strategy. These will be subject to discussion and early resolution with the potential suppliers and contractors.

2.6 To meet the tight timescale and budget it is necessary to procure and execute a large number and wide range of projects and contracts, some in parallel and some sequentially. Each of these will need to be closely monitored and progressed in a manner which is robust, transparent and professional whilst the risks associated with the Programme and related Projects will be carefully monitored and managed.

2.7 The ODA will follow the good practice guidance on Programme and Project Management as laid out in the “Office of Government Commerce’s (“OGC’s”) Successful Delivery Toolkit” and “Achieving Excellence in Construction” both available online at www.ogc.gov.uk.

2.8 As the Programme of Projects for the Games and the Legacy progress, ODA will promote continuous improvement by ensuring that ODA, its contractors and their sub-contractors, transfer into and take on board lessons learnt from one project to the next similar project. This will include, where appropriate, lessons that have been learnt from earlier Olympic Games.

2.9 For each project or cluster of projects, the Gateway ReviewTM process will provide a regime for independent health checks throughout the life of a procurement project at key decision points and be reflected in the Programme Plan. Information on the OGC GatewayTM Review Process is available online at www.ogc.gov.uk.

The Delivery Partner

2.10 A key to successful delivery of the Games and the Legacy is for the ODA to procure then provide direction and leadership to a major chain of professionals, suppliers and contractors.

2.11 The ODA has made clear its intent to be a “thin” Contracting Authority providing strategic leadership and acting in the role of intelligent client to suppliers, contractors and the supply chain.

2.12 The ODA will appoint a Delivery Partner who will provide resource, management, technical capability and systems to manage the planning, design, procurement and delivery of the construction for the venues and infrastructure. Throughout the procurement and management of construction, the Delivery Partner will have a critical role to play in managing risk and opportunity. Whilst the Delivery Partner will be undertaking the majority of procurements associated with the Programme, ODA will always remain the Contracting Authority.

2.13 The Delivery Partner, contractors and sub-contractors will be responsible for operating within the ODA Procurement Policy and the Code. Therefore, references to the ODA should be taken as also meaning the Delivery Partner where appropriate.

2.14 The level of use and application of the Procurement Policy and Code by either the ODA or the Delivery Partner will be dependent on the particular procurement taking place and the Delivery Partner may be required to develop its own more detailed procurement procedures.

3 THE PROCUREMENT FRAMEWORK

The Governing Legal Framework

3.1 It is a statutory obligation for the ODA to comply with the Public Contracting Regulations (“the Regulations”) which are the European Union’s Public Procurement Directives and the UK’s Enabling Legislation. The purpose of the Regulations is to ensure competitions for public contracts are open and fair.

3.2 The ODA recognises that it is particularly important to avoid any discriminatory actions which could put the Games and Legacy timetable at risk.

3.3 The Regulations define a number of alternative methods of running public competitions (referred to as “Procedures”), each with mandatory timescales.

3.4 The policy is to use the most appropriate Procedure, for each procurement, taking into account the specific characteristics, the likely level of market interest and the timetable requirements. As part of the Business Case for each project the Procurement Plan will be required to examine the available procurement options, and recommend the appropriate solution.

3.5 Where appropriate and when needed to shorten the delivery timetable, the ODA may use a range of tools such as Framework Agreements and dynamic purchasing systems (e.g. Zanzibar) which comply with the Regulations rather than running ODA competitions. These may be from the OGC, English Partnerships or other Government Departments.

3.6 The ODA also plans to set up its own Framework Agreements and Panels (e.g. Legal) which comply with the Regulations and are accessible to others involved in the Games and the Legacy.

Electronic Procurement

3.7 Electronic procurement has demonstrated tangible savings at an operational level. As a consequence, the ODA will use e-procurement systems as appropriate to openly advertise its contracting opportunities, negotiate prices in a transparent and auditable manner.

3.8 ODA will encourage its supply chain to trade electronically yet is mindful that such electronic procedures should not disadvantage those who are not in a position to do so, or where organisations with such a facility would have an unfair advantage over those which have not.

3.9 The ODA will engage with organisations such as Business Link, Regional Development Agencies (“RDAs”), Scottish Enterprise, Invest Northern Ireland and the Welsh Development Agency in order to encourage the adoption of electronic trading for tertiary sector, small and medium businesses.

Standardised Contracts

3.10 An essential component of the ODA’s approach to the forms of contract is to drive up consistency and quality in delivery, commissioning and contracting with consultants, suppliers and contractors.

3.11 As a general rule the ODA intends to use the New Engineering Contract Version 3 (“NEC3”) in its various forms. NEC3 incorporates the partnering approach which the ODA is seeking, and will provide necessary protection and incentives to both the ODA and its suppliers and deliverers. Additional clauses (through the ‘Z’ clause provisions of the NEC3) will be used to accommodate particular delivery characteristics such as the environmental, sustainability and other social requirements. Nevertheless, the ODA may, as appropriate and at its discretion, also use other forms of contract where the NEC3 may not be appropriate to the procurement.

Interests of Public Sector Bodies

3.12 The ODA will have direct contractual relationships with many companies of consultants, suppliers and contractors and will be the guardian of the interests of all applicable public sector bodies and funders. To provide comfort and protection to these and other interested parties, the ODA will obtain Collateral Warranties from its contractors, suppliers and consultants in favour of the interested parties.

Selection and Contract Award

3.13 In consultation with experts and stakeholders, the ODA will develop selection and award criteria appropriate to each procurement project, taking into account market capacity and capability. The ODA will declare the selection and award criteria (in descending order of priority) and will publish the relative weightings in accordance with the Directives.

3.14 Each selection process will include a robust financial appraisal of candidates to determine their economic standing and financial regularity. The minimum economic standing will depend upon the scale of the contract and the risk involved. In assessing the minimum financial standings the ODA will not unfairly disadvantage Small and Medium Enterprises (“SMEs”). The financial appraisal will be based generally on Treasury and the OGC guidance, available at: www.hm-treasury.gov.uk/ and www.ogc.gov.uk

3.15 The commitment of candidates to Legacy and sustainable delivery are critical. The ODA will apply a weighting to evidence of environmental and sustainability management systems and socio-economic commitments as appropriate to the procurement taking place.

3.16 A variety of tender evaluation techniques appropriate to the scale and complexity of the purchase will be used to make a robust and transparent evaluation of tenders. Such assessment and decisions will be based on value for money including, where applicable, over the whole life of the contract and into the Legacy.

3.17 The result of each competition will be published on the ODA’s website and where appropriate in the Official Journal of the European Union (“OJEU”).

Contract Management

3.18 The ODA will work with designers, contractors and suppliers over the life of each project to ensure that opportunities to maximise value for money are identified and realised.

3.19 Specific Performance Indicators will be set to assist in attainment of the sustainability requirements of the procurement.

Dispute Avoidance and Dispute Resolution

3.20 Contractual disputes are time consuming, expensive and damage client/supplier relationships. They can add substantially to the cost of the project and its related contract as well as negating some, or all, of its benefits particularly in terms of value for money.

3.21 One of the key features of the NEC3 form of contract is the early identification and avoidance/resolution of problems whether associated with time cost or quality. The contract early warning procedure places obligations on all parties to work together to avoid disputes. The contract includes adjudication provisions which comply with the industry standard and Statutory Obligations and Rights.

3.22 In the event that disputes do arise, it is important that they are dealt with in an appropriate and expedient manner. The form of dispute resolution will be determined by the circumstances.

3.23 The ODA is in the process of establishing a Dispute Resolution Board.

4 GOVERNANCE

4.1 The ODA recognises that the programme will be subject to intense scrutiny at all levels.

Approvals

4.2 In addition to the Governing bodies which are described in the Management Statements, Financial Memorandum and Standing Orders, the ODA will form sub- groups and advisory committees at appropriate levels for each project. Where possible, these will include representatives from the funders and key stakeholders.

4.3 Details of the financial approval levels and signing limits are described in the ODA Financial Memorandum and Standing Orders. For each procurement, Business Cases including Procurement Plans will be prepared and submitted for approvals at the relevant stages.

4.4 The ODA will undergo OGC GatewayTM Reviews. This process is designed to provide funding organisations and other key stakeholders the assurances on the robustness of the Programme and Project Governance.

Probity and Business Ethics

4.5 Any suggestions of inappropriate behaviour, misconduct or corruption on the part of those involved in procurements will damage the integrity of the project and the image of the Olympics. The ODA is determined to embed a high standard of probity and business ethics in all processes and activity. This will be set out in detail in the Code.

4.6 The ODA Financial Memorandum Standing Orders detail the separation of duties as necessary to remove the potential for fraud or corruption related to public funding.

Confidentiality

4.7 The ODA is committed to protecting its own confidentiality and also that of outsiders. Confidentiality Agreements will be used to prevent any non-ODA authorised, deliberate, mischievous or vexatious, use or dissemination of data and information. This applies in particular to the sensitive information relating to assessment, evaluation and contractual information as part of the procurement process.

Conflict of Interest

4.8 The ODA is committed to mitigate and manage conflicts of interest. The ODA will, at an early stage in procurements, seek information from interested firms on the potential for conflicts of interest and ways to manage any.

4.9 The ODA has established a register of interests for staff working within the ODA. This ensures that potential for conflict of interest is identified to avoid or mitigate any associated risks. This is particularly relevant to those involved in procurement assessment and evaluation, and managing contracts.

Transparency

4.10 The ODA will be subject to the provisions of the Freedom of Information Act 2000 (“FOIA”) which establishes a general right of access to all types of 'recorded' information held by public authorities. The ODA recognises the key role that good storage and access to information plays in helping to achieve its goals and targets. The ODA is also aware of the need to protect commercially sensitive information which is obtained as part of the tendering process. It also recognises that openness is essential to the credibility of Olympic procurement processes. The ODA’s electronic systems and the hierarchy of documentation within it have been established to assist this process.

5 MANAGEMENT OF RISK AND OPPORTUNITY

5.1 The scale, scope, value and time-critical nature give the Games and Legacy a unique risk profile.

5.2 Notwithstanding what risks are transferred, the ODA will remain accountable for the outcome.

5.3 Therefore, the ODA will apply a sophisticated approach to managing risk and seeking to maximise opportunity across the whole programme taking into consideration:

• the complex links and dependencies within and between projects and how to mitigate the potential knock-on effects across the programme of the poor performance of one project;

• which organisation is best placed to bear a given risk;

• which, if any, organisation or body has the ability to remove the risk or prevent it becoming a reality;

• which organisation or body can best minimise the consequences of the risk;

• the cost of transferring any risk;

• the unquantifiable impact and consequences of reputation risk; and

• an approach which will motivate all participating organisations to seek out and deliver opportunities to improve the Programme outcome whether in terms of cost, timetable or quality.

5.4 The ODA will primarily adopt the principles and practice set out in the OGC Achieving Excellence in Construction Procurement Guidance Number 04 - Risk and Value Management.

5.5 The coordination of risk management with the GatewayTM Review process at each critical decision making stage will also help ensure that ODA have correctly identified and are managing the risks on the Register.

Retention and Incentives

5.6 It is not the ODA’s intention to implement anything which hampers the ability to work with ODA suppliers and contractors to deliver. The principles which the ODA will adopt in regard to withholding retention money and/or the use of bonds within each contract will be considered on the merits of each case.

5.7 The ODA intends to offer incentives as appropriate with regard to performance and quality, and for the mitigation of some aspects of risk under the appropriate NEC3 contract option and in accordance with NEC guidance on percentage share arrangements.

Insurance

5.8 Consultants, suppliers and contractors must hold appropriate levels and classes of Employers Liability Insurance and they will also be required to take out appropriate levels of Professional Indemnity cover. As part of each procurement process, the ODA will be seeking evidence of such cover.

5.9 The ODA will seek to provide site-wide insurance cover in place of multiple different types and cover levels negotiated by each supplier/contractor. This uniform and consistent approach to the insurance cover required in respect of damage to the works (commonly known as Contractors All Risks or “CAR”) and Third Party Liabilities will provide a more comprehensive insurance solution and also offer better Value for Money arising from discounted costs for volume.

6 SEEKING AND OBTAINING VALUE FOR MONEY

6.1 The ODA will follow Government Procurement policy as set out in Government Accounting Chapter 22, which details that the use of public funds places a duty to demonstrate that Value for Money (VfM) has been achieved. VfM is defined therein as "the optimum combination of whole-life cost and quality to meet the user's requirement”.

6.2 Whilst a basic test that VfM has been achieved is that a competition has been held, the ODA is not seeking, and acknowledges that VfM does not mean, in every case, the lowest price.

This is supported by the Sustainable Procurement Task Force who defines Sustainable Procurement as:

“a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment. Sustainable Procurement considers environmental, social and economic consequences of: Design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers' capabilities to address these consequences throughout the supply chain”.

which confirms that for the procuring organisation to assess and decide on VfM goes far beyond the monetary cost of the contract.

6.3 Whilst the final VfM decision is taken at contract award, the non-financial issues, including sustainability, must be aligned with the other business requirements from the outset of the procurement.

6.4 ODA will seek to maximise VfM and the benefits that can be achieved for all the organisations involved in and concerned with the delivery of the Games and the Legacy (e.g. LOCOG, GLA) by exploring with those relevant organisations and any potential suppliers (to any of the involved organisations) how to realise the full potential of the opportunities that might be available to all.

6.5 The consideration that passes between the ODA and suppliers for each contract may not be monetary but reflects a value in kind that a supplier is offering the Games and the Legacy. This may be particularly relevant in situations involving LOCOG and the sponsors to the Games.

6.6 The ODA will ensure that at Business Case and Procurement Plan stages, the intended outcomes of the procurement will form part of the overall assessment and scoring process. These will also then aid the VfM judgement at contract award.

6.7 The ODA will implement the OGC Guidance on VfM and will seek to:

• reduce costs associated with the purchasing effort by streamlining procurement and finance processes;

• improve on Programme and Project management skills;

• drive better VfM by sharpening negotiating skills to improve deals with designers, contractors and suppliers, either by reduced costs, improved quality, efficiency savings, aggregating demand for greater leverage or volume discounts;

• improve contract management on a continuous basis; and

• manage assets particularly at the end of the contract.

6.8 The ODA will seek further VfM improvements in the following ways.

Openness and Supplier Interface

• Ensuring that bidders appreciate the full nature of the business requirements, increasing the likelihood of realistic bids and deliverable solutions;

• Behaving as an intelligent customer, will discuss openly all the elements of the requirement; and

• Seeking to dispel the misconception that bids will be won on lowest price alone. By challenging these perceptions the procurement process will improve the competitiveness of suppliers.

The Business Requirement

• Testing each Business Case critically for continued business need and related cost;

• Ensuring the full requirements are specified and met, without unjustifiable “add- ons”; and

• Specifying the requirement in outcome terms so that designers, contractors and suppliers can recommend the most cost-effective methods and in order to encourage innovative solutions to meet that need.

Contract Award

• Ensuring at contract award, that the supplier is identified which has met the specified requirements offering the best VfM;

• Optimising the cost of delivering a service or goods over the full life of the asset rather than minimising the initial contract price; and

• Contracting for (where possible) continuous cost and quality improvements throughout the duration of the contract.

Sponsorship Rights

6.9 The ODA will consider the possibility of bundling the procurement of goods and services with the sale of LOCOG’s Olympic Sponsorship rights.

Whole Life Costing

6.10 The ODA recognises that the combination of whole cost and quality to meet user requirements is an important aspect of procurement. It is the ODA’s intention to balance the principle of awarding contracts on a best value basis taking into account the long term value over the life of the asset and into the Legacy.

6.11 The ODA will examine all the aspects of and maximise the benefits that can be achieved in the Legacy by focusing on whole life costing and will use the substantial OGC suite of guidance in the Achieving Excellence in Construction series.

7 PROCUREMENT VALUES

This section of the Policy lays out the ODA’s core procurement values and how it will approach them.

Occupational Health and Safety

7.1. The ODA is committed to being a leader in environmental, health and safety management. As supporters of the Strategic Forum for Construction’s “Respect for People Code of Good Working Health and Safety Practices”, the ODA will seek to achieve excellent performance in design and construction by setting clear objectives, priorities and standards, and working with its suppliers to meet and exceed them.

7.2. The ODA will do this by forming mutually supportive integrated teams, focussing designers on the reduction of risk and the contractors on the management of risk. It will set, in consultation, stretching performance indicators, monitor the performance and publish the results. It will encourage and support continual improvement.

Health and Safety Policy and Commitment

7.3. The ODA has adopted a formal policy that declares its commitment. The ODA believes that good Health and Safety (“H&S”) performance is essential and its aim is to integrate H&S considerations into every planning, design and construction operation.

7.4. The protection of the health and safety of everyone involved in the work of the ODA, or affected by it, is important. H&S performance will be given the highest priority at all times by systematically identifying, assessing and managing H&S risks, monitoring performance against targets and publishing the results.

7.5. The ODA vision is to go beyond eliminating preventable illnesses, injuries and business losses due to unplanned events in ODA premises and on ODA sites. It extends to enhancing the well-being of all involved in the project work. The ODA’s aim is to be a best-practice organisation in H&S performance, fully compliant with applicable UK and European legislation and standards and continually improving upon these.

7.6. The ODA will engage with all its staff, partners, suppliers and the community so that everyone is enthusiastically involved in managing risk, securing success and acting as an ambassador for its realistic and practical vision. Respect for the people who work for and with the ODA, and for the local communities within which the ODA works, defines its approach to H&S performance and its management. The ODA will ensure engagement with the workforce of suppliers, trades unions and appointed safety representatives, forging partnerships to meet ODA’s high standards.

ODA H&S Standard

7.7. The ODA has developed a H&S Standard, which clearly sets out its expectations and requirement for all suppliers and contractors. The Standard has been drafted to reflect current best practice, and embodies a wide variety of mutually-supporting standard-setting initiatives, including (not exhaustive): OGC GatewayTM review processes and OGC Common Minimum Standards; Major Contractors Group Health & Safety Strategy; Constructing Excellence; corporate strategies of major clients;

Clients Charter; Strategic Forum’s Respect for People Code; Code of Construction Practice (drafted for the Lower Lea Valley Olympic and Legacy Planning Permission).

7.8. This standard shall form a key component in the ODA procurement process. The fundamental aim is to ensure the good health, safety, welfare and well being of everyone directly involved in the development work for the Games and Legacy or who may be affected by it. To achieve this, the ODA has established some specific supporting objectives including those addressing:

• design for healthy and safe construction, use and maintenance;

• accidents and ill health prevention, and occupational health support;

• training and competence; and

• worker engagement, organisational culture and personal behaviour.

Promoting Design Excellence

7.9. The ODA wishes to promote innovative design and deliver buildings and facilities that will impress during the 2012 Games, and also leave a legacy of good quality architectural, landscape and urban design, making the Lower Lea Valley a well- designed, integrated and liveable part of London.

7.10. The general principles which the ODA will adopt in dealing with the construction industry are those contained in “Creating Excellent Buildings: A Guide for Clients” (CABE, 2003). The competitive arrangements and selection processes will be carried out in collaboration with representatives from the Mayor’s Architecture and Urbanism Unit (“AUU”), the Commission for Architecture and the Built Environment (“CABE”) and will draw upon established best practice as set out in the GLA’s guide “Commissioning a sustainable and well-designed city: a guide to competitive selection of architects and urban designers.”

7.11. The ODA are supporting the set up of an Olympics Design Review Panel which will be run by CABE and the AUU. The panel members will draw from the expertise available from the AUU and CABE's existing panel membership, plus new members, as required, who will be appointed through open advert. This panel will review the Master Plan and individual buildings at key stages in the design development and ultimately fulfil CABE's statutory role in providing independent design input into the local planning authority's consideration of planning applications. The Panel will be managed under CABE's existing design review procedures.

7.12. The ODA will require designers to ensure that their designs meet rigorous standards of functionality and operational effectiveness and efficiency to meet user and client demands in both the Games and, as appropriate, Legacy mode.

Supporting Best in Class through The Strategic Forum for Construction

7.13. The Strategic Forum for Construction has prepared a document “Construction Commitments: Olympics 2012”. The Forum has been established, on behalf of the construction industry, to encourage the industry to deliver its best, ensuring a best in class approach throughout every aspect of the project.

7.14. The Construction Commitments document describes six key areas which, in the view of the Forum, are vital to delivering the Olympic vision to time and budget - and safely:

• procurement and integration;

• commitment to people;

• client leadership;

• sustainability;

• design; and

• health and safety.

7.15. The ODA subscribes to and will adopt the general principles described in the Forum’s Construction Commitments document when it has been agreed by Ministers.

Embedding Quality, Encouraging and Managing Innovation

7.16. Innovation should be encouraged as it can add value to a solution. With innovation, however, comes potential risk which needs to be assessed on a case-by-case basis. The ODA procurement will encourage appropriate innovation by specifying Requirements based on outcomes, keeping demands on design and technical aspects (“Inputs”) to a minimum and allowing for other costed options in meeting the requirements to be proposed.

Environmentally Responsible Procurement

7.17. Using the best practice guidance from others, including the Mayor of London’s Green Procurement Code and Building Research Establishment’s Environmental Assessment Method (BREEAM), ODA will seek to minimise any adverse impact on the environment as part of its operations with the following objectives:

• Enhance the natural and built environment through procurement;

• Minimising the carbon footprint of the Olympic and Legacy development;

• Minimising waste and avoiding waste to landfill using an integrated approach to resource management;

• Protecting and enhancing the biodiversity and ecology of the Lower Lea Valley;

• Maximising positive, and minimising adverse impacts on land, water and air quality; and

• Designing and building in a sensitive manner for internal and local environments, adaptable to future climates.

Continuous Improvement and Sustainability

7.18. The ODA will become a major customer for a range of industries and the procurement of goods, works and services must take account of competition within and the capacity, expertise and skills available from the Market. 7.19. The ODA is committed to seeking continuous improvement in its own, and its contractors, performance on sustainability that is consistent with the need to provide VfM by:

• developing a sustainable development strategy;

• setting and monitoring relevant, measurable sustainability objectives and reporting progress regularly;

• establishing sustainable development as a clear feature of ODA decision-making;

• maintaining management systems to manage and monitor sustainability performance;

• early consultation with the supplier market;

• setting output-based specifications, inviting bidders to submit proposals for meeting sustainability objectives, rather than itself be prescriptive, so as to encourage innovation;

• setting minimum standards to which contractors and designers will be required to work;

• requiring major contractors to have expertise and management systems in place to manage and monitor sustainability performance;

• educating, training and motivating staff and contractors to work in a socially and environmentally responsible manner;

• working collaboratively and proactively with contractors, whilst providing robust contract management; and

• actively managing its supply chain to achieve sustainability objectives.

Promoting Equality and Diversity

7.20. The ODA will promote equal opportunities, amongst our diverse communities and across its supply chain and will undertake procurement in line with its Equal Opportunities Policies. ODA will seek to contract with agencies and companies which share the ODA’s values on equality of opportunity and diversity. Suppliers’ commitment to equal opportunities and diversity will form part of assessments where relevant to the contract and when all other elements of the tender are equal.

Providing Experience, Qualifications and Training

7.21. The ODA is committed to requiring and encouraging its suppliers (including consultants, designers and contractors) to operate with a commitment to a competent

workforce. It supports the use of the Construction Skills Certification Scheme and National Vocational Qualifications Framework and equivalents where appropriate.

7.22. The ODA will also work with the built environment sector skills councils including CITB (Construction Industry Training Board) Construction Skills, SummitSkills, Energy & Utility Skills and Asset Skills and other industry and general providers in order to fulfil its commitment to providing a legacy of trained and motivated people for the future.

7.23. The ODA encourage all of its contractors and sub-contractors to work with organisations such as the LDA, Business Link and other industry bodies in order to fulfil its commitment to help contractors recruit and train the people that they need for their business.

7.24. The ODA will work with its contractors to encourage appropriate links to be formed with organisations such as Jobcentre Plus and the Learning and Skills Councils amongst other public and private agencies so that people get access to jobs and training.

7.25. The ODA will work proactively with its contractors and suppliers so that, wherever possible, forthcoming employment opportunities are communicated to a wide audience.

Excellent Labour Relations

7.26. The ODA will encourage all of its contractors and subcontractors to have adequate provision for employee representation in the work place (through trade union membership or other means), to enable quick and smooth resolution of conflict should it arise.

Fair Employment

7.27. Good quality services depend on appropriately skilled and motivated workforces. The ODA would like all employees of contractors and subcontractors working on ODA contracts to be on fair employment terms and conditions, such as the good practice guidance promulgated by the Chartered Institute of Personnel Development (“CIPD”).

London Living Wage

7.28. A key objective of the programme is regeneration, through creating new employment and opportunities in an area which has seen relatively low levels of investment, and has relatively high levels of unemployment and poverty. The ODA recognises that the London Living Wage can make a significant contribution in this regard.

Ethical Sourcing/Human Rights

7.29. The ODA wants to work with suppliers which have a good track record in human rights and use goods and materials which have been produced ‘ethically’. This includes seeking suppliers which operate within the laws of their country, who do not have discriminatory practices, and who do not use child or bonded labour.

Maximising Community Benefits

7.30. The ODA will seek to maximise the social and economic impact of its operations through procuring designers who will work to achieve the following:

• Preserving and improving the heritage of the Lower Lea Valley;

• Creating an accessible and pedestrian friendly Olympic Park;

• Creating new safe mixed use public space and buildings appropriate to the demographics and character of the Lower Lea Valley; and

• Providing for new health, sporting and cultural facilities in the Olympic and Legacy development.

Developing the Supply Market

7.31. The ODA seeks to contribute to local, regional and national economic development through its procurement activities and through industry consultation gain access to the best advice, and access the most valuable experience available. To this end, the ODA commits to the following:

Consultation

7.32. The ODA will consult with professional and trade associations and federations on most of its major design, construction, supply and commissioning contracts. It will also consult with the materials and components supply side of industry in order to consider buying forward bulk materials and components on a framework or other commercial mechanism which provides a good commercial outcome for the ODA and certainty for industry. It will consult with industry in order to secure the quality and volume of material which it will require.

7.33. In addition to the other organisations mentioned within this Procurement Policy, ODA, its contractors and their subcontractors, will encourage the involvement of Waste and Resource Action Programme (WRAP) who’s mission is to accelerate resource efficiency by creating efficient markets for recycled materials and products, while removing barriers to waste minimisation, re-use and recycling.

Advertising

7.34. The ODA will place relevant Contract Notices in the Official Journal of the EU (“OJEU”) as required, in a form prescribed by the EU Public Procurement Directives. The ODA will advertise these and other procurement opportunities in the trade and other minority press, and on its own website.

7.35. ODA will also use the websites of others created for such advertising purposes e.g. Supply2Gov the new government-backed service managed by Business Link and specifically designed to give companies easy access to public sector contract opportunities of a lower-value (typically worth under £100,000) and particularly targeted for Small to Medium and Black and Minority Ethnic (“BME”) enterprises.

7.36. The ODA will work closely with the LDA, Government and other agencies on emerging proposals (for example for Employment and Contract Forecasting Units,

Business Clubs, and Supplier programmes) to provide businesses with information about forthcoming contracting and sub-contracting opportunities, and support in tendering. Once these proposals are developed, the ODA will commit to ensuring that all contracting opportunities are made available through a single portal, and will encourage its main contractors to use the same approach to procure sub-contractors. Details of ODA contracts will be made available at www.london2012.com/business.

Competition

7.37. The ODA will encourage competition, locally, nationally and internationally through actively promoting tendering opportunities, so as to promote as wide and as vigorous a competition as can be achieved.

7.38. The ODA will accept tenders from consortia of two or more organisations. The ODA will require any consortium to become a legal entity and to provide a clear explanation of the consortium’s own, internal management structure and processes before entering into the contract.

Supplier Diversity

7.39. Small and Medium Sized Enterprises, and Minority Owned Businesses owned by minorities and women (e.g. BME groups, disabled people) are particularly important in developing the Olympic Promise, locally, regionally and nationally. The ODA will ensure it does not inadvertently exclude such small companies from accessing ODA contracts, through its procurement strategies and procedures.

Collaboration

7.40. The successful delivery of the Games and Legacy will rely heavily on government and delivery organisations working in close partnership with other stakeholders. These will be from a wide range of public, private and voluntary sectors. In some areas links have already been established, while in others (for example forthcoming procurement projects), collaborative working will be explored during their inception.

8 COMMUNICATIONS AND STAKEHOLDER ENGAGEMENT

8.1. The ODA seeks to involve, communicate and consult effectively with stakeholders including local communities to support the successful delivery of the Games and Legacy. The ODA will rely heavily on government and delivery organisations working in close partnership with other stakeholders.

8.2. In particular, the ODA seeks to optimise communication and stakeholder engagement with the following groups:

• industry and potential suppliers;

• partners and intermediaries such as the Regional Development Agencies (“RDAs”), including the London Development Agency (“LDA”), Scottish Enterprise, Invest Northern Ireland and the Welsh Development Agency; and

• local community mainly in terms of:

- creating a sense of ownership;

- attaining valuable local perspectives; and

- recognising and mitigating the disruption.

8.3. There is a high degree of expectation about the business opportunities which the Games and Legacy will bring to companies in the UK, London and, in particular, those located within the direct vicinity of the Olympic Park. It is important to ensure that these expectations will be managed and that opportunities are delivered within an appropriate legal framework.

8.4. The ODA will ensure that there is consistency in the way that business opportunities are communicated and also that this communication is:

• two way;

• early; and

• clear.

8.5. It is important that there is sufficient notice of requirements to allow firms to develop the appropriate skills and capacities to compete for contracts. We aim to set out an overall programme for procurement during summer 2006.

8.6. The London 2012 website www.london2012.com/oda will be used, among other media, and the ODA is working with partners on proposals for a ‘Business Club’ which will provide access to single point of information about procurement (including those run by LOCOG or others) for, among others, upcoming procurement opportunities, results of competitions, standard documentation etc.

8.7. Each contract and area of procurement policy will have its own group of key stakeholders. While the nature of some stakeholders’ involvement will require them to be engaged in many aspects of Olympics procurements (for example the Government) others will be engaged on a contract by contract basis.

8.8. The ODA will identify and outline each set of key stakeholder groups and the methods by which they will be engaged with each Business Case. Through adopting a proactive and structured approach to stakeholder engagement it will ensure that where appropriate, key stakeholders have the opportunity to input, comment and sign off on documentation and key decisions.

For further information about the ODA visit the website at www.london2012.com/oda or contact via post: Olympic Delivery Authority (ODA), One Churchill Place, Canary Wharf, London E14 5LN.

Annex A – Olympic & Paralympic Games Programme Objectives

FINAL Version, 7-Apr-06 Objectives signed off by OB (29-Mar-06) and OBSG (6-Apr-06) Strategic Lead Objectives Stakeholder Sub-Objective

1.1 LOCOG - Deliver an inspirational environment and experience for athletes and provide a first class experience for the Olympic Family and spectators. 1.2 LOCOG - Meet IOC and IPC needs and specifications, including venue overlays. 1.3 LOCOG - Ensure effective and efficient planning and operation of the Olympic and Paralympic Games (including security, transport, technology, health, volunteering and accessibility). 1. To stage an inspirational Olympic 1.4 LOCOG - Maximise audience size at venues. Games and Paralympic Games for 1.5 LOCOG - Secure support and engagement across all sections of the UK public. the athletes, the Olympic Family 1.6 LOCOG - Deliver effective media presentation and maximise global audience size. and the viewing public. 1.7 LOCOG - Communicate Olympic values across the world, particularly amongst young people. 1.8 LOCOG - Stage inspiring ceremonies and cultural events. 1.9 LOCOG - Deliver an operating surplus from the Olympic Games and Paralympic Games. 1.10 LOCOG - Operate sustainable and environmentally responsible Olympic Games and Paralympic Games.

2.1 LDA - Assemble and remediate land for Games venues. 2. To deliver the Olympic Park and all 2.2 ODA - Create infrastructure and facilities associated with Games venues to time and agreed budget in accordance with the principles of sustainable development. venues on time, within agreed budget 2.3 ODA - Deliver Olympic and Paralympic venues to time, to design and building specification and to agreed budget, providing for agreed legacy use. and to specification, minimising the 2.4 HMG - Secure smooth flow of public funds to the ODA. call on public funds and providing for 2.5 ODA - Deliver necessary transport infrastructure for Games, and devise and implement effective transport plans which provide for legacy use. 2.6 ODA -Deliver agreed sustainable legacy plans for the Olympic Park and all venues. Vision a sustainable legacy. 2.7 BOA - Deliver a viable London Olympic Institute.

To host an inspirational, safe 3.1 HMG - Maximise the economic, social, health and environmental benefits the Games bring to the UK and all sections of the UK population. and inclusive Olympic and 3.1.1 HMG - Maximise the employment and skills benefits for the UK arising from Games-related business. Paralympic 3.1.2 HMG - Maximise the wider economic benefits of the Games across the UK, including those for tourism and business promotion. 3.1.3 HMG - Maximise cultural benefits from hosting the Games and the Cultural Olympiad. Games and leave 3.1.4 HMG - Maximise social benefits, including in health, education and volunteering, of hosting the Games. a sustainable 3.1.5 HMG - Ensure that the Games contribute to Sustainable Communities priorities, including the wider Thames Gateway. legacy for 3. To maximise the economic, social, 3.1.6 HMG - Agree and promote sustainable development and procurement policies, including commitments to sustainable energy and waste management goals. London and the 3.1.7 HMG - Promote positive images of the UK to an international audience. health and environmental benefits 3.1.8 HMG - Ensure the UK’s diverse communities are engaged with, and benefit from, the changes and opportunities arising from hosting the Games in the UK. UK. of the Games for the UK, particularly through regeneration 3.2 Mayor - Maximise the economic, social, health and environmental benefits the Games bring to London and all Londoners. and sustainable development in East London. 3.2.1 Mayor - Maximise the employment and skills benefits for Londoners arising from Games-related business. 3.2.2 Mayor - Maximise the wider economic benefits of the Games to London, including those for tourism and business promotion. 3.2.3 Mayor - Maximise cultural benefits to Londoners from hosting the Games and the Cultural Olympiad. 3.2.4 Mayor - Maximise social benefits to Londoners, including in health, education and volunteering, of hosting the Games. 3.2.5 Mayor - Ensure that the Games contribute to Sustainable Communities priorities, including the London Thames Gateway. 3.2.6 Mayor - Agree and promote sustainable development and procurement policies, including commitments to sustainable energy and waste management goals. 3.2.7 Mayor - Promote London’s image as a leading world city to an international audience. 3.2.8 Mayor - Ensure London’s diverse communities are engaged with, and benefit from, the changes and opportunities arising from hosting the Games in London.

4.1 BOA - Secure UK Olympic and Paralympic athletes’ success in the Games. 4. To achieve a sustained improvement 4.2 HMG - Maximise British athlete success in the Olympic and Paralympic Games through investing funds in, and supporting, our most talented athletes. in UK sport before, during and after 4.3 HMG - Secure long-term benefits to elite sport competitors – particularly in Olympic and Paralympic Sports. the Games, in both elite performance 4.4 HMG - Maximise increase in UK participation at community and grass-roots level in all sport and across all groups 4.5 Mayor - Maximise increase in London participation at community and grass-roots level in all sport and across all groups. – particularly in Olympic and 4.6 HMG - Implement viable legacy use for Olympic sports facilities outside London. Paralympic sports – and grassroots 4.7 Mayor - Implement viable legacy use for Olympic sports facilities in London. participation. 4.8 HMG - Work with those in other countries, particularly those in development, to promote sport excellence and participation. 4.9 BOA - Promote, through sport, the Olympic ideals across the 2012 programme.

Annex B – Definition of Terms, Reference Organisations and Websites

The following table lists reference organisations, documents and websites which might provide further useful information.

Term/Reference Definition/Description Weblink

AUU The Mayor’s Architecture and www.london.gov.uk/mayor/auu/i Urbanism Unit (AUU) ndex.jsp CCG The Construction Clients’ Group www.constructingexcellence.org .uk Construction Commitments: A document prepared by the www.strategicforum.org.uk/2012 Olympics 2012 Strategic Forum for Construction TaskGroup.pdf outlining the key areas critical to the successful delivery of the 2012 Olympic Games in the form of a Code. BREEAM Building Research Establishment’s www.breeam.org Environmental Assessment Method Business Link Business Link are the small www.businesslink.gov.uk/ business support and advice service CABE Commission for Architecture and www.cabe.org.uk/ the Built Environment (CABE). Commissioning a GLA Architecture + Urbanism Unit, www.tfl.gov.uk/tfl/downloads/pdf sustainable and well- July 2005 guide. /about-tfl/report- designed city: a guide to library/Guidetocompetitiveselecti competitive selection of onofdesigners.pdf architects and urban designers Creating Excellent A best practice guide on how to www.cabe.org.uk/default.aspx?c Buildings: A Guide for commission a building project ontentitemid=450 Clients (CABE, 2003) successfully. Egan Report Rethinking Construction. The report www.ciob.org.cn/resources/Con of the Construction Task Force on struction%20Rethinking/Rethinki improving the quality and efficiency ng%20construction%20the%20e of UK construction. 16th July 1998 gan%20report.pdf English Partnerships Agency helping Government to www.englishpartnerships.co.uk/ support high quality sustainable growth in the UK Government Accounting, Chapter 22 of the Government www.government- Chapter 22 Accounting 2000 manual. accounting.gov.uk

IOC The International Olympic www.olympic.org Committee Latham Report The Latham Report, ‘Constructing Can be bought at: the Team’, Sir Michael Latham, www.constructionbooksdirect.co 1994 m/Product.asp?PID=1086 LDA The London Development Agency. www.lda.gov.uk/

Term/Reference Definition/Description Weblink

LOCOG The London Organising Committee www.london2012.com/en/ourvisi of the Olympic Games on/LOCOG/

NEC3 New Engineering Contract, Version www.neccontract.com/nec3/inde 3, published on 14 July 2005. x.asp ODA Olympic Delivery Authority. www.london2012.com/en/ourvisi on/ODA/ OGC Office of Government Commerce. www.ogc.gov.uk/ The OGC has established the following: • Achieving Excellence in Construction Procurement Guidance • Financial Appraisal Guidance • GatewayTM Reviews • Successful Delivery Toolkit • Zanzibar Procedures The various methods of running a www.opsi.gov.uk Public Contracting competition as defined within the Regulations. Programme A portfolio of projects selected, www.ogc.gov.uk planned and managed in a coordinated way. Usually characterised by an overall business outcome rather than individual deliverables. Project Producing a pre-defined outcome, or result, to specified timescales, costs and quality. PUK Partnerships UK www.partnershipsuk.org.uk Sustainable Procurement Drawing up an action plan to bring www.sustainable- Task Force about a step-change in sustainable development.gov.uk public procurement in the UK. TfL Transport for London (TfL). www.tfl.gov.uk/tfl/ The Strategic Forum for A cross industry/government body www.strategicforum.org.uk Construction (SFfC) hosted by the Construction Industry Council. Towards a One Planet London 2012, WWF and www.london2012.com Olympics BioRegional’s concept of a One Planet Olympics. Treasury Her Majesty’s Treasury www.hm-treasury.gov.uk/

Annex C – Consultation for document

This draft consultation policy has been developed with the following key public sector stakeholders:

• Office of Government and Commerce (OGC);

• Greater London Authority Group (GLA) including: TfL and the LDA;

• Department for Culture, Media and Sport (DCMS) including:

o Department for Education and Skills (DfES);

o Department for Environment Food and Rural Affairs (Defra);

o London Skills Council (LSC);

o Department for Work and Pensions (DWP);

o JobCentre Plus; and

o Department for Trade and Industry (DTI).

• Partnerships UK; and

• London Organising Committee for the Olympic Games (LOCOG).

If you would like to make comments on the Policy, please send them to:

Procurement Policy Consultation 23rd Floor Olympic Delivery Authority 1 Churchill Place London E14 5LN

[email protected]

The closing date for public and stakeholder responses to this final draft Policy is 2nd October 2006. We expect to issue a revised version towards the end of 2006, together with feedback on the consultation process, though the exact timing will depend on discussions with our Delivery Partner.